Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which one of the statements about margin requirements on option positions is not correct? a. The margin required will be lower if the option is
Which one of the statements about margin requirements on option positions is not correct?
a. The margin required will be lower if the option is in the money.
b. If the required margin exceeds the posted margin, the option writer will receive a margin call.
c. A buyer of a put or call option does not have to post margin.
d. Even if the writer of a call option owns the stock, the writer will have to meet the margin requirement in cash.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started